Betchoice Corporation, the parent company of the online betting platform Unibet, has been fined $1,014,120 for not shutting down the accounts of 954 customers who had chosen to self-exclude from gambling.
Unibet to Pay Over $1M in Fines
Following an investigation by the Australian Communications and Media Authority (ACMA), more than 100,000 breaches of the Interactive Gambling Act 2001 (IGA rules) have been found. These relate to not closing the accounts of 954 customers who had registered with BetStop, Australia’s National Self-Exclusion Register (NSER).
ACMA member and gambling lead Carolyn Lidgerwood described the incident as a significant failure in Unibet’s compliance with the National Self-Exclusion Register (NSER) requirements. The Authority’s investigation uncovered what it deemed serious and prolonged breaches by Unibet. In some instances, it took as long as 190 days to close self-excluded accounts, a delay Lidgerwood emphasized as unacceptable and inconsistent with the intent of customers who had chosen to exclude themselves from gambling.
While the investigation confirmed that no bets were placed nor marketing materials sent to self-excluded individuals during the period in question, Lidgerwood stressed that this outcome serves as a warning to the industry: compliance with NSER rules is mandatory, and failure to adhere may result in significant financial penalties and other regulatory actions available to the ACMA under the Interactive Gambling Act (IGA).
This isn’t the first time Unibet has been hit with large fines. Just a couple of months ago, France’s gambling regulator, ANJ, issued a record-breaking $843,000 fine to SPS Betting, which operates Unibet in the country.
Here’s What the Investigation Found
ACMA’s investigation revealed that 45 customer accounts remained open for 190 days or more, including many individuals who had self-excluded from online and telephone betting on the very first day the NSER became operational. Although these self-excluded customers were not able to place bets during their exclusion period, their accounts should have been promptly closed.
Additionally, the company provided wagering services to another 45 customers after their registration with the NSER had ended, allowing them to use previously existing accounts that should have been deactivated. The ACMA found that these individuals were able to place thousands of bets post-exclusion, with one customer placing over 1,200 bets through an old account.
IGA rules say that once an individual registers with the NSER, wagering service providers are required to close that person’s account as soon as practicable. Each day the account remains open constitutes a separate breach, hence why Unibet accumulated well over 100,000 separate breaches in the 954 accounts. If a customer’s self-exclusion period concludes and they choose to resume gambling, they must create a new account; access to previously closed accounts is not permitted.
It should be noted that after the imposition of the fine, Unibet has voluntarily committed to issuing refunds to affected customers who were able to access accounts that should have been closed. According to ACMA, these actions are a significant step by the company toward ensuring future compliance with regulatory requirements.